For example, suppose you want to calculate the duration of a bond you purchased on April 23

, 2000, and that

will mature on November 30, 2020. Further MBT Habari, suppose that the coupon rate is 8%, which is paid in four quarterly

payments, but that the bond yield is 7%. If you want to use the US (NASD) day count basis of 30 days in a month

and 360 days in a year, you would use the following formula to calculate this bond’s yield:

=DURATION ("4/23/2000","11/30/2020",.08,.07,4,0)

The formula returns the value 10.6496.

Using the MDURATION Function

The MDURATION function calculates a modified duration given the settlement date, maturity date, coupon rate,

yield, frequency, and basis. It uses the following syntax:

MDURATION (settlement, maturity, coupon, yield, frequency, basis)

For example, suppose you want to calculate the duration of a bond you purchased on April 23, 2000, and that

will mature on November 30, 2020. Further suppose that the MBT Ema Sandals,coupon rate is 8%, which is paid in four quarterly

payments, but that the bond yield is 7%. If you want to use the US (NASD) day count basis of 30 days in a month

and 360 days in a year, you would use the following formula to calculate this bond’s yield:

=MDURATION ("4/23/2000","11/30/2020",.08,.07,4,0)

The formula returns the value 10.4664.

Article Tags: Bond Duration, Bond Yield, Duration Function, Duration Functions, Settlement Date,, Maturity

Date,, Coupon Rate,, Count Basis, Coupon Rate, Actual Number, Excel Returns, Yield, Frequency,

Excel provides standard functions, IRR and NPV, for calculating the internal rate of return and net present

value of a set of cash flows. While most often you’ll want to use these two functions, they may sometimes

present a practical problem: Both the IRR and NPV functions assume you’ve first constructed a worksheet that

arranges the cash flows into equal periods. In other words, to use the IRR or NPV function, you must first

construct a worksheet that shows the investment’s monthly MBT Salama cash flows, or its annual cash flows, or the cash

flows from some other consistent time period.